CMA CGM reports slight positive core EBIT margin for 2016
Volumes shipped in 2016 by the CMA CGM group, including all its subsidiaries, rose to 15.6 million TEUs, 20.4 per cent more than in the previous year thanks to the acquisition of NOL. On a comparable basis, volumes amounted to 12.8 million TEUs in 2016 resulting from the Group’s strategic choice to focus on volumes offering the best freight rates to preserve its operating profitability.
The average income per TEU increased by 2.9 per cent between third quarter and the fourth quarter 2016. In a difficult environment for the industry, the average income per TEU, on a comparable basis shrank 13.6 per cent in 2016 compared to 2015.
Accordingly, the CMA CGM group posted revenues of USD 16.0 billion, up 1.9 per cent on the year. In the fourth quarter, revenue rose 28 per cent compared to the same period in 2015. Recurring core EBIT margin stood at 0.2 per cent in 2016. In the fourth quarter of 2016, it was 4.2 per cent (5.3% on a comparable basis, excluding NOL), dramatically higher than during the same period in 2015 (0.6%) and the third quarter 2016 (-1.9%).
Commenting on the 2016 performance, Rodolphe Saadé, appointed CMA CGM Chief Executive Officer on February 8th, said: “2016 has been a landmark year in the history of our development, with the strategic acquisition of NOL and the creation of Ocean Alliane, which will fully contribute to the Group’s performance in 2017.”
The Ocean Alliance with the partners Cosco Container Lines, Evergreen Lines and Orient Overseas Container Lines will start operating on 1 April 2017 with 40 maritime services. CMA CGM is the main player, deploying a fleet of 119 vessels out of the 323 that make up the alliance.
CMA CGM, founded by Jacques R. Saadé, is a leading worldwide shipping group. Its 453 vessels with 2.2 million TEUs capacity call more than 420 ports in the world on all 5 continents. With a presence in 160 countries and through its 600 agencies network, the Group employs 29,000 people worldwide, including 2,400 in its headquarters in Marseilles.